Madhya Pradesh Industries Pin Hopes on Union Budget for Growth Boost
Industries and Micro, Small, and Medium Enterprises (MSMEs) across Madhya Pradesh are raising their expectations from the upcoming Union Budget, seeking faster access to government schemes, further simplification of GST compliance, and targeted sectoral support to strengthen manufacturing and exports. Industry representatives have voiced concerns that despite the availability of multiple central and state schemes, procedural delays, extensive documentation requirements, and slow disbursals continue to limit their impact on MSMEs. Simplified processes and faster approvals remain key demands to enhance operational efficiency.
Textile Sector Calls for Focused Interventions
The textile sector has specifically sought focused intervention to boost cotton-based manufacturing and exports. The Madhya Pradesh Textile Mills Association has called for a new production linked incentive (PLI) scheme for cotton garments and made-ups with lower investment thresholds and wider product coverage. This move aims to make the scheme more accessible to smaller players and stimulate growth in the sector.
The association has also demanded a refund of input tax credit on capital goods and services across the textile value chain. M C Rawat, secretary of the MP Textile Mills Association, emphasized the need for a cotton price stabilisation fund with a five percent interest subvention for actual users to cushion mills against price volatility. "To ensure stability in yarn prices, margin money for cotton finance should be reduced from 25% to 10% and stock limits increased from three months to nine months so that mills can procure adequate cotton during the season," Rawat stated, highlighting measures to support sustainable procurement practices.
Technology and Skill Development Take Center Stage
Industry bodies have highlighted the critical need for technology-led growth to remain competitive. Yogesh Mehta, president of the Association of Industries of Madhya Pradesh, noted, "The Budget should place strong emphasis on artificial intelligence adoption, automation support, and technology upgradation, enabling MSMEs to improve productivity and compete at the global level." This focus on digital transformation is seen as essential for enhancing efficiency and innovation in the industrial sector.
Skill development has emerged as another priority area for industries. Gautam Kothari, president of the Pithampur Audhyogik Sangathan, pointed out, "Skill development remains another major focus area, with industries seeking enhanced funding for industry-linked training programmes to bridge the gap between shop-floor requirements and workforce capabilities." Investing in workforce training is viewed as crucial for addressing skill shortages and boosting productivity.
Addressing Operational and Cost Challenges
Industrialists have flagged various operational and cost-related challenges that need urgent attention. Virendra Porwal, an industrialist, argued that allotment of industrial land through auctions should be stopped as it sharply raises project costs. He also pointed to frequent technical glitches on the Government e-Marketplace (GeM) and tender portals, which delay procurement and payments, hindering smooth business operations.
Industries have further sought rationalisation of electricity tariffs, proposing a cap of Rs 6 per unit to reduce operational expenses. Other demands include:
- Decentralisation of industrial approvals at the district level to speed up processes.
- Rationalisation of renewal fees charged by the health and safety department with a 10-year validity to reduce compliance burdens.
- Removal of dual levies of maintenance charges and property tax by multiple authorities to avoid redundant costs.
Industry bodies believe that a reform-oriented Budget addressing taxation, power costs, land policy, skill development, and technology adoption could significantly strengthen Madhya Pradesh's MSME ecosystem and improve its global competitiveness. By focusing on these areas, the Budget has the potential to drive sustainable growth and create a more supportive environment for businesses in the state.
